Individuals receiving a diagnosis may not know what procedures and medications to expect over the course of their treatment. They may also not know the approximate costs of these procedures and medications. Therefore, an individual receiving a new diagnosis may be uncertain as to what they can expect both from a health and financial standpoint.
In addition, health care providers may not advertise the costs of their services (e.g., the cost of a visit or procedure). This may make it difficult for individuals, for example, who do not have insurance and therefore have to look for the most cost effective treatment option. Insurance companies may have the benefit of being able to negotiate a large number of visits and procedures (for a large number of patients) with physicians who may offer a reduced rate for the increased volume (this may be similar for pharmacies and medications, etc.). However, without the benefit of knowing the negotiated rates being offered by some physicians, uninsured individuals may pay the higher initial rates. If individuals knew the reduced rates and/or the rates charged by other physicians, they may be able to negotiate a better rate with their current physician, pharmacy, etc. (or find a more cost effective alternative).